Why Nations Fail: The Origins of Power, Prosperity, and Poverty

Party led Botswana onto a path of inclusive economic and political
institutions. When the diamonds came on stream in the 1970s, they
did not lead to civil war, but provided a strong fiscal base for the
government, which would use the revenues to invest in public
services. There was much less incentive to challenge or overthrow the
government and control the state. Inclusive political institutions bred
political stability and supported inclusive economic institutions. In a
pattern familiar from the virtuous circle described in 
chapter 11
,
inclusive economic institutions increased the viability and durability
of inclusive political institutions.
Botswana broke the mold because it was able to seize a critical
juncture, postcolonial independence, and set up inclusive institutions.
The Botswana Democratic Party and the traditional elites, including
Khama himself, did not try to form a dictatorial regime or set up
extractive institutions that might have enriched them at the expense
of society. This was once again an outcome of the interplay between a
critical juncture and existing institutions. As we have seen, differently
from almost anywhere else in sub-Saharan Africa, Botswana already
had tribal institutions that had achieved some amount of centralized

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authority and contained important pluralistic features. Moreover, the
country had economic elites who themselves had much to gain from
secure property rights.
No less important, the contingent path of history worked in
Botswana’s favor. It was particularly lucky because Seretse Khama
and Quett Masire were not Siaka Stevens and Robert Mugabe. The
former worked hard and honestly to build inclusive institutions on
the foundations of the Tswanas’ tribal institutions. All this made it
more likely that Botswana would succeed in taking a path toward
inclusive institutions, whereas much of the rest of sub-Saharan Africa
did not even try, or failed outright.